Back Off The Basics: Using Data to Recruit for Results and Retention

As we wind down a tumultuous year, indications are that 2024 will bring rate relief and a rebound. Are you ready to capitalize when conditions improve? So many companies grappled with how to increase market share as volume plummeted; though there are multiple ways to attempt this, recruiting producers into the organization is commonly at least a portion of the plan. Not all companies have been as successful as they hoped with the traditional thinking and approach to recruiting. 

It's understandably tempting to chase top producers to bring in as much volume as possible quickly. Even if a company is successful in securing one or more mortgage loan officers who originate hundreds of millions annually, it might not be the best or most effective solution. Introduction of heavy hitting MLOs can disrupt a company's ecosystem and culture, leading to unintended consequences. And the questions of loyalty and ability to retain this type of recruit loom large. Rather than chasing an "end result" like a massive producer, it's possible to increase market share by building a sustainable pathway using a concerted, informed approach that aligns with your long-term goals. What does that look like? Hollywood and Major League Baseball provide a great parallel.

The 2011 film, "Moneyball" starring Brad Pitt is based on the real story of Oakland As General Manager Billy Beane tasked with fielding a winning team at a great financial disadvantage. The As were unable to compete with wealthier MLB teams for players, so Beane turned to a data approach called sabermetrics to build a winning team. The strategy resulted in the acquisition of several new players who weren't obvious choices, but racked up the statistics needed to produce wins. The lending industry parallel to this can be achieved by mining growth multiplier data to find producers who align with your current production stats in area and loan type mix, as well as MLOs and real estate agents poised for growth. InGenius’ data can be distilled down using multiple parameters, so it's possible to search for a mix of people and specialties that mirror the volume in markets and products you specialize in as well as those you wish to pursue for expansion, community service or regulatory reasons. 

Achieving growth in the current climate requires looking beyond the basic want and need for “more business.” Review your current production and ask some questions – here are some to get you started: 

• Does your organization have a heavy concentration of one loan, property and borrower type?
• Are there segments in your service area you've overlooked or never broken into? 
• How strong are your partner relationships, and are you targeting the right ones?
• Would an MLO who does a high percentage of FHA, VA or Special Purpose Credit Program business be a benefit to your organization? 
• Are you interested cultivating business in diverse markets and identifying the MLOs and real estate professionals who serve these areas and clientele?

The answers to your questions can help you assign specific goals and determine the characteristics of the people and areas you'd like to target, such as:  

• MLO and production data on loan, property and borrower types
• Targeted contact data for MLOs and real estate agents
• Reporting on Core-Based Statistical Areas, Majority Minority     Census Tracts   
• Race, ethnicity, LMI%

Once you’ve identified your recruiting targets, you’ll know what your common ground will be going into the conversation. Recruiting that results from alignment of vision and values has incredible potential for long-term retention and success according to Qualtrics: Employees who say their company’s mission, vision and values align with their own are far more likely to recommend their employer as a great place to work (70% vs. 25%), and to say their work gives them a feeling of personal accomplishment (72% vs. 29%). The Qualtrics study also found that those same employees are 77% more likely to stay with the company.  

The year-over-year numbers in the Mortgage Bankers Association's Mortgage Finance Forecasts show the extent of the market retraction; but it’s time to adjust our mindsets for improvement on the horizon. Leaders must look beyond the current market phase and begin laying the groundwork for the future. InGenius’ data allows you to comb the industry and recruit best-fit professionals for your organization who target and have experience with consumers in various sectors. The key to growth goes beyond increasing market share: companies must strive to increase the market itself. 

Jeff Walton is CEO of InGenius. With over 35 years in home mortgage and as a CEO and President of large national mortgage companies, Jeff is focused on helping the industry achieve high performance using actionable intelligence. Interested in learning more? Book an intro call with InGenius Data.